Select Oregon Corporations May Get Big Payoff from Small Political Investment, Despite Budget Crisis

Publication Date: April 2003

Publisher: Democracy Reform Oregon

Author(s): Janice Thompson

Research Area: Banking and finance; Politics

Type: News release

Coverage: Oregon

Abstract:

Several Oregon businesses--and one based in Washington--may emerge as big winners, despite a budget crisis that has led to the longest legislative session in the state's history. The Senate is slated to vote tomorrow on House Bill 3183A, a proposal that would lower taxes on Oregon-based companies that sell a large percentage of their products outside of the state.

The bill, backed by a group of businesses and associations dubbed the Smart Growth Coalition, also includes provisions designed to allow "forest product companies with 300,000 to 400,000 acres of forest land," to take advantage of this change as well. The Legislative Revenue Office estimates that four companies meet those criteria, including Longview Fibre Company, a Washington-based corporation that was named in a hearing on the bill. (Under confidentiality rules, the other businesses remain unknown.)

Other tax provisions have been stuffed into this bill, bringing its total revenue impact to $54.8 million in the 2005-07 biennium and $130.3 million in the 2007-09 biennium. The sales factor change alone will cause the state to forego $11.7 million in the 2005-07 biennium, and $22.5 million in 2007-09.